High demand season for diamonds just around the corner

By Leia Michele Toovey- Exclusive to Diamond Investing News.

The summer market lull has made its mark on July diamond sales in Asia.  Japanese polish diamond imports took a marginal 0.9 percent rise to hit $73.96 million.  Hong Kong reported July retail sales were flat, with jewelry among the worst performers. July diamond imports from India fell 14.7 percent to $25.56 million. Imports from Belgium rose 8.8 percent to $22.9 million. Israel’s polished diamond exports fell 55 percent to $207 million in August, compared to the same month one year ago; polished imports were flat at $312 million, as net polished exports (exports less imports) fell to a $166 million deficit, compared with a positive $66 million in August 2007. Rough imports fell 6 percent to $373 million, and rough exports grew 10 percent to $277 million. Net rough imports (rough imports minus exports) for the month dropped 34 percent to $96 million. Israel’s net diamond account (net polished exports minus net rough imports) fell to a deficit of $262 million, compared to an $80 million deficit.

Diamond giant Harry Winston Diamond Corporation (NYSE:HWD) will release their second quarter earnings for 2008 on Tuesday, September 9 after the market close.  The company will hold a conference call the following morning at 10:00 am ET to discuss the financial results.  Harry Winston Diamond Corporation, formerly Aber Diamond Corporation, is a specialist diamond company with assets in the mining and retail segments of the diamond industry. The Company supplies rough diamonds to the global market from production received from its 40% ownership interest in the Diavik Diamond Mine. The company also owns 100% of Harry Winston Inc., a fine jewelry and watch retailer with retail locations in New York, Paris, London, Beijing, Tokyo and Beverly Hills.

In Dubai, the diamond industry is gaining momentum. Despite threats of a slowing global economy, growth in the Middle East, mainland China and Hong Kong have supported growth in Dubai’s diamond industry. During the inaugural Middle East Diamond and Jewelery Summit in November, the Dubai Multi Commodities Center plans on focusing on enhancing their trade with China. The summit is scheduled to take place November 8-9 at the Atlantis Hotel, Palm Jumeirah, Dubai, and has attracted well known China and Hong Kong-based diamond and jewelry companies including Chow Tai Fook, Chow Sang Sang, and Luk Fook,. The Dubai Diamond Exchange reported in August that rough diamond exports to China grew 950 percent in the first half of 2008, while rough imports from China rose 138 percent.
The conference will bring together jewelers from the Middle East, including Saudi Arabia and Turkey, as well as from Mainland China and Hong Kong.

As an example to the amazing growth in this region, Dubai-based jewelry and watch retailer Damas International Limited reported a surge in profits during its first half of fiscal 2008 as strong market conditions in the Gulf spurred growth. Net profits grew 137 percent to $44.9 million for the six months ending June 30, 2008. Group revenues rose 33.7 percent to $653.4 million. During the reporting period, Damas opened 42 new stores, including 11 in the UAE, 14 elsewhere in the Gulf, and 17 outside the Gulf. The company said it plans to open more than 80 shops by the end of 2008 to bring the total to 569 Damas stores around the world.